Sinomax Group (01418) announced that on October 14, 2024, the subscriber (a wholly-owned subsidiary of the company), M Logistical, and the target company M DK Holdings ApS entered into a subscription agreement. The target company agreed to issue shares, and the subscriber agreed to subscribe for the shares at a price of 6 million euros (equivalent to approximately 50.99 million Hong Kong dollars). The subscription price per share is 146.67 euros (equivalent to approximately 1,246.48 Hong Kong dollars). After completion, the target company will be owned by M Logistical and the subscriber with a 55% and 45% stake respectively, and the financial performance of the target group will not be consolidated into the group accounts.
The target company is a privately owned limited company registered in Denmark. As of the date of this announcement, it currently has three subsidiaries. The main business of the target group is the research, design, procurement, trade, quality assurance, and control of sleep products, furniture, and home trinkets, focusing on Denmark and the European Union. The target group also conducts business with some existing customers and constantly explores business opportunities globally. The target group is an existing customer of the group, primarily purchasing sleep products.
As of the date of this announcement, the target group is an existing customer of the group. The board of directors believes that the subscription will not only strengthen established business relationships but will also establish specific strategic cooperation through the equity investment in the target company. The equity investment in the target company is expected to enhance operational synergies and improve customized services for the target group. In addition, this will provide the group with a priority position to access new business opportunities from the target group, thereby providing potential for business volume and revenue growth. It is expected that the strategic investment will also pave the way for new innovative approaches, promoting the exchange of industry knowledge and insights.
